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The World Gold Council (“WGC”) expects that demand for gold will be strong during 2010, driven by growing demand for jewellery in China and India as well as an increase in European and US investment in the context of continued economic instability, sovereign risk and the threat of a ‘double dip’ recession. According to WGC’s Gold Demand Trends report, published today, demand in India and China will continue to grow, driven by jewellery demand, in spite of high local currency gold prices. In Q1 2010, India was the strongest performing market as total consumer demand surged 698% to 193.5 tonnes(1). In China, demand proved resilient; demand increased 11% in Q1 2010 to 105.2 tonnes. This strong demand is despite high local gold prices, which on 12 May in India increased to Rs 56,032/0z, the...
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